BUYING A HOUSE IN ITALY

DESCRIPTION OF THE STEPS TO PURCHASE A HOUSE IN ITALY FOR FOREIGNERS

If you want to buy a house in Italy, it is important to know the key steps that must be followed in order to complete the purchase.

1) Request an Italian tax code (Codice Fiscale*), which will be needed for the written agreement with the owner, for the deed, and for a possible Italian bank account. It can be requested in two ways:

• By going with a valid identification document to any office of the Italian Revenue Agency (Agenzia delle Entrate) in Italy. By filling out and signing a form, it is obtained within a few minutes (it is preferable to book an appointment on the Agenzia delle Entrate website for the issuance of a new tax code).
• By sending an email to the Italian consulate or embassy in the country of origin and following the provided instructions (it is usually obtained within a few days, at most one week).

2) When identifying the house to be purchased, a written offer must be made to the owners. This offer will indicate the offered price, payment terms, the deadline for signing the deed, and all information about the house. A deposit (Caparra Confirmatoria**) must be paid to secure the house (between 10% and 30% of the house price, normally 20%).

• If you already have an Italian bank account, you will issue a bank check or cashier’s check made out to the seller.
• If you do not have an Italian bank account, there will be a commitment to make a bank transfer within 3/5 days from the acceptance of the offer directly to the seller’s bank account.

3) Once the offer is accepted by the seller, the deposit check will be delivered, or the bank transfer will be made. At this point:

• The real estate agency fee for mediation must be paid.***
• The registration fee must be paid to the Italian Revenue Agency (approximately €300/400 in taxes, specifically: €200 for registration tax + €32 for stamp duty + 0.5% of the deposit amount).

4) The notary is chosen, and the date for the deed of sale is set. On the day of the deed:

• The keys are handed over.
• The balance is paid to the sellers.
• The notary is paid (his fee plus taxes for the Italian government).

The payment at the notary can be made in two ways:

• By opening an Italian bank account, transferring the money from abroad to the Italian bank account, and bringing a cashier’s check to the notary.
• By using the notary’s escrow account, meaning that a few days before the deed, the buyer transfers the money to the notary’s dedicated account, and after the deed is signed, the notary transfers the funds to the seller.

*CODICE FISCALE: an alphanumeric code identifying the person

*CAPARRA CONFIRMATORIA: This is a sum, usually equal to 20% of the offered price, which serves to secure the house. Once this amount has been paid, the house is reserved. If the buyer decides not to proceed with the purchase, the deposit is lost. If, instead, the seller decides not to sell anymore, they must return the deposit in double, meaning they must refund the amount received and pay the same amount as a penalty to the buyer.

**REAL ESTATE AGENCY FEE: The real estate agency commission varies depending on the house price. My agency applies the following fees:

• €2,500 for houses up to €50,000
• €3,000 for houses between €50,000 and €100,000
• 3% of the purchase price for houses over €100,000